Transcorp scales up as expansion gathers momentum

Transnational Corporation of Nigeria (Transcorp) Plc has stepped up implementation of key strategic initiatives aimed at enhancing the productivity, efficiency and scope of its businesses while exploring opportunities for new ones that could impact on future returns.

With major acquisitions in power and agribusiness, new initiatives in its hotel and tourism business and the ongoing exploratory activities from its existing oil block, the management of Transcorp at the weekend provided updates on the various initiatives across the group’s four business lines. They includ hotels, agriculture, power generation and oil exploration.

President, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Emmanuel Nnorom, said with the group strengthening its various business lines, Transcorp is rapidly transforming into a well-diversified conglomerate that provides ordinary shareholders a unique opportunity to share in Nigeria’s economic fortunes.

He said the group has continued to improve operational and cost effectiveness as well as explore opportunities to expand product offering as part of its strategic thrust for brand building and extension. He added that with the sustained profitability and dividend payment over the years shareholders have already started to reap the rewards of the group’s turnaround.

Nnorom, who took select senior journalists on a brief visit to the site of the group’s new Transcorp Hilton Hotel construction in Ikoyi, Lagos, noted that the group has already made significant progress in key sectors of its business; in the hotel and power sectors, a development that is already impacting positively on the group’s performance.

It should be recalled that Transcorp Hotels, where Transcorp holds 83 per cent equity stake, raised N20 billion in bond issues in 2015, to finance the enhancement of its flagship Abuja-based Transcorp Hilton Hotel, including a multipurpose banquet centre and construction of Transcorp Hilton Hotel, Lagos, among others.

The Transcorp Hilton Lagos, a full service, 350-room hotel on Glover Road, Ikoyi, will be the Hilton Group’s second hotel in Nigeria by Transcorp, following the award-winning Transcorp Hilton Hotel Abuja, which is one of the leaders in Hilton’s global network.

Nnorom said the completion of the ongoing projects by Transcorp Hotels would further position the group as the leader in Nigeria’s hospitality industry, pointing out that Transcorp Hilton Port Harcourt has gotten the necessary planning approvals from the Rivers State Government and it is currently revising its design to optimise the use of its expanded site.

According to him, Transcorp Hilton, Abuja will be upgrading 670 rooms in the next 18 months with works already ongoing on the installation of new elevators and procurement of fittings for guest and meeting rooms as well as external works on construction of a new access way, warehouse and car park.

In the power business, Nnorom said Transcorp has made several important business decisions, which will have significant impact on its fortunes going forward. The power business already contributes nearly two-thirds of the group’s revenue.

According to him, ongoing initiatives should lead to significant increase in capacity and efficiency in the power business with the overall target of achieving about a quarter of Nigeria’s total power generation.

He outlined that the acquisition of additional turbines for power generation, increase in the output of the plant from 160 megawatts to 650 megawatts in 2015 and being on track to deliver 850 megawatts of available capacity in 2016 have positioned the power business for continuous growth.

“Our target is to be responsible for at least 25 per cent of the total power generated in Nigeria. Currently, challenges to the actualisation of this goal include, but not limited to supply of good quality gas, transmission losses and inadequate evacuation infrastructure and payment of owed debts to Transcorp Power limited by MBET. Despite these challenges, Transcorp Power Limited is determined to forge ahead in the discharge of her primary objectives and in the creation of lasting value for Nigerians at large,” Nnorom said.

He said Transcorp will soon join the elite group of oil-producing companies as it has already advanced in the exploration of its oil block-OPL 281 and signed of production sharing contract with the Nigerian National Petroleum Corporation (NNPC) while continuing to prepare for drilling and seamless production.

He said the group expects the OPL 281 to begin commercial production by 2018.

“We have put in place a world class management team and are committed to developing the synergies between our natural resources portfolio and our power interests, creating an integrated energy approach that directly links Nigeria’s natural resource wealth to the daily needs of our people,” Nnorom said.

He commended Transcorp’s shareholders for their support and assured them that the board and management will not relent in positioning Transcorp as a true vehicle for popular participation in Nigeria’s bright future and prosperity.

In his remarks, managing director, Transcorp Power Limited, Mr Adeoye Fadeyibi commended the Federal Government for the innovations introduced in repositioning the power sector such as increase in tariff to strengthen the energy sector, ongoing metering processes resolving issues of stranded power.

“We have repositioned the Ughelli Power Plant towards contributing significantly to the government’s plan to generate 10,000 megawatts before the end of next year. It is our plan that we will contribute significantly to the energy pool,” Fadeyibi said.

He reiterated the commitment of the Transcorp Power Limited to increasing the capacity of its power plant in the short term while urging Nigerians to support ongoing reforms in the power sector to ensure stable and efficient power supply.